Enclosure No. 1 in Mr. Fraser's No. 65 of October 10th, 1908.
**Translation.**
**EXTRACT from the "Kung Lun Hsin Pao" of October 9/108.**
**TELEGRAM from the Grand Secretary CHANG to the Viceroy and Officials.**
The section of the Ssuchuan-Hankow Railway lying within Hupei is a source of the utmost profit to the province, and it is essential that the work of construction should be pushed forward independently of Peking forthwith. This is Hupei's duty for two reasons:-
1. It will supply public development expenses. The necessary outlay of the province of Hupei on the important undertakings of military training and education has been very heavy and resulted in extreme financial stringency, and future provision for these objects will be increasingly difficult. The suggestion for a loan for the construction of the Hupei section of the Ssuchuan-Hankow line was first mooted by myself when I was in Hupei, and I engaged a large staff of foreign engineering experts and deputed many officers, the expenses of whose three surveys were very heavy. All my worry and labour were simply in the interests of Hupei.
2. It will make for the common good of merchants and people. Railways in Kiangsu, Chekiang and Kuangtung have led to wrangling between the upper and lower classes, and their disputes have been carried to most unreasonable limits. At the time when I was in Hupei and making arrangements concerning railway matters, I never invited either the upper or lower classes to take part, so as to centralise control and